Once Evaluation is completed, a shortlist of suppliers can be identified to move forward to this Due Diligence stage. Due Diligence supports the Negotiation stage and any future transition or implementation activities.
Due Diligence is conducted by both the supplier and the client organisation, and usually culminates with the submission of a best and final offer (BaFO) by the supplier.
For the client, due diligence offers the opportunity to examine the supplier’s claims in terms of their financial stability, operational capability and management, as well as providing the ability to the verify material facts, or to confirm issues that cannot otherwise be confirmed in writing or through documentation.
For the supplier, due diligence offers the opportunity to further investigate and understand the client’s requirements with the intention of clarifying any assumptions or verifying expectations.
Typically, due diligence may include site visits, documentation reviews, meetings with subject matter experts or stakeholders, workshops understand the impact, risk and/or challenges presented by either client or supplier actions or activities.
The supplier's BaFO is used by the client to re-assess risk, with the intention of identifying the preferred supplier to enter the Negotiation stage.
Click below to find out about the other Stages in our Sourcing and Selection Services offering: